I have a '96. F-250 Supercab, 4x4.. 200k miles and the motor is perfect. I lost an idler pulley at about 35k but that was a fluke.
As discussed... it IS the transmission that may give you problems but that is only if you tow a lot. A new one will run you $2500 (rebuilt) but for that you can get a bulletproof aftermarket rebuild.
I have never heard that the CPS was a problem in the older models. The 01's aand up have had some issues.
That motor is damn near bulletproof in my opinion. Go to http://www.thedieselstop.com/forums/f28/ for any problems or advice on what to look for. Don't get scared off by all the posts of things that are broke. I only put that to give you a place to ask questions and get advice.
If you can get it at a good price, go for it! I call my truck 'the Goat' because she has been everywhere.. down a mountain side, through mud bogs (not intentionally), crawling through rocks, and pulling a 20k fifthwheel up the Rocky Mountains. I lost my Tranny at around 120k. Haven't had any problems since.
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